Gold Price Forecast: Rising US real yields to increase the downside pressure on XAU/USD – Credit Suisse

FXStreet Insights Team FXStreet

Rising real yields should put pressure on gold. In the view of strategists at Credit Suisse, the precious metal may be in the throes of constructing a large top.

Resistance at $1,877 is expected to cap

“Our base case remains that we are close to a peak in inflation expectations and 10-year US Real Yields are in the process of building a large and important bearish ‘wedge’ reversal. If our view is correct, it would suggest gold may in fact be forming a large and significant top.”

“The immediate risk is seen lower for support next at $1,759, removal of which can see a retest of long-term pivotal support at $1,691/77. Beneath this latter area at any stage would in our view mark a major top.”

“Resistance at $1,877 is now expected to cap but only above $1,917 would suggest we are seeing an important turn higher.”

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FXStreet Insights Team

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